**CO HB24-1340 - Incentives for Post-Secondary Education****Note – This is not legal advice, based on information gathered
Summary: *** **2025 – 2033 Refundable state income tax credit for student who matriculate to any public Colorado institution of Higher education (including technical college) **
- **And whose household adjusted gross income is $90,000 or less **
- **And completes the FAFSA and CO Appl for State Financial Assistance CASFA **
- **Refundable tax credit in the amount equal to the amount paid by or for the benefit of the eligible student in tuition and fees **
- For the first 65 academic credit hours (excluding concurrent enrollment, advance placement, international baccalaureate, military credits or any other credits accumulated prior to matriculation at an institution)
- **Minus any scholarships or grants **
- With the institutional submitting information annually in January as to…
- *the amount of tuition and fees minus scholarships or grants for the previous calendar year
- **student’s eligibility **
- and incentive amount-1
Updating Scholarship Programs: ****If you don’t want your scholarship funds to offset the refundable state tax credit, you have three options, or a combination: **1. Provide scholarships to students with incomes over $90,000 who are ineligible for the refundable tax credit.\
**This is not a solution for those who target needs-based, low-income student/household support, but may apply to some scholarships based on other criteria.
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2. Provide the scholarship for tuition and fees excluding the first 65 credit hours.\
**The refundable tax credit applies only to the first 65 credit hours once enrolled in higher education.
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3. Provide the scholarship for items excluding tuition and fees for the first 65 credit hours.\
This could be a good option for scholarship programs targeting needs-based, low-income students as data shows that it is non-tuition expenses that most often challenge these students, including books and supplies, technology, optional student opportunities (ex: gym membership, Greek life), food and housing, transportation, etc.\
**Starting with 66 credit units, scholarship funds can be applied to tuition and fees. **\
**Scholarship funds can still be passed through higher education institutions for these expenses. ****Scholarship providers may also consider support to students/families to claim the refundable tax credit. If it is not claimed, the funds are lost to the student/family. This is particularly important as the tax credit is refundable, meaning that even if you don’t pay taxes, you can submit a tax filing and receive these funds.**
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